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This text examines investments across Latin America and the Caribbean in education, training, health and nutrition. A survey finds the region's human resources fare relatively well by international comparison. Historically high investment levels in some countries are associated with good subsequent macroeconomic performance. However, important gaps and inadequate investment in recent years are cause for concern. The study points to the impact of human resource investment on productivity and distribution and examines how changes in human resource policies - particularly those affecting the delivery of social services - could substantially improve returns in several key areas of development. Proposed changes include granting symmetrical policy treatment to private and public suppliers, and devising incentive schemes through markets or voucher systems.